Corinthian Colleges raises view as students grow

Corinthian Colleges raises outlook as more students expected amid higher unemployment

• On 10:15 am EDT, Thursday October 29, 2009

SANTA ANA, Calif. (AP) -- For-profit education provider Corinthian Colleges Inc. raised its fiscal 2010 guidance Thursday after reporting higher enrollment pushed first-quarter results beyond expectations.

Rising unemployment is helping drive enrollments at the company. Corinthian now predicts full-year earnings per share between $1.55 and $1.60, up from a prior forecast of $1.30 to $1.36.

Analysts polled by Thomson Reuters expect profit of $1.35 per share.

Corinthian also expects higher revenue as new enrollments rise as much as 13 percent from fiscal 2009. Sales will be between $1.62 billion and $1.64 billion, Corinthian said, up from previous guidance of $1.58 billion to $1.6 billion.

Corinthian said it expects earnings in its fiscal second quarter between 37 cents and 40 cents per share, above Wall Street analysts' expectations of 32 cents per share, according to a Thomson Reuters survey.

A recent acquisition of Heald College, focused in northern California, is expected to add to growth in the second half of the fiscal year. Online enrollments, new programs at existing campuses and a high school recruiting program are also expected to contribute to higher profit.

Corinthian shares advanced $1.01, or 6.1 percent, to $17.71 in morning trading. The stock has ranged from $12.26 to $21.73 over the past year.

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